Inflation is red hot – clocking in at 7.9% in February.
That doesn’t even include a 50% jump in gas prices. Or food prices that are up at least 10%.
High quality stocks are the single best way to hedge your portfolio against inflation. That’s because the best stocks can grow their earnings at a faster pace than inflation.
Historically, there’s a strong correlation between earnings growth and stock prices.
That means owning stocks with inflation-beating earnings growth is the best way to make money in this market.
America’s leading tech stocks are one way to play this trend.
You’ve probably heard of the “FANG” stocks. These are the biggest tech stock giants in the U.S.
These originally included Facebook, Amazon, Netflix and Google. And it’s more recently been expanded to FAANG+M – to also include Apple and Microsoft.
Typically, the FAANG+M stocks all moved together. However, that’s changed since the start of this year. And we’re seeing some of these stocks lead the market – while others are faltering.
Today, I’ll explain why 3 of these stocks are leading. And why they’ll continue to beat inflation and the market.
$100k Tech Stock Bet – NOT the FANG Stocks: I’m taking $100,000 of my savings – and I’m going “all in” on new next-generation tech stocks. They’re called the MACE stocks. And they stand to topple Facebook and other top tech giants. Go here for urgent trade details.
The best stocks in 2022 will be those that have pricing power.
Pricing power means the companies can raise their prices as their costs go up due to inflation. When the cost of materials or labor increases – these companies can simply pass the added costs on to consumers.
Companies that have pricing power can deliver earnings growth that exceeds the inflation rate.
Only 3 of the big 6 tech stocks are expected to achieve inflation-beating growth in 2022.
Let’s take a look at them…
Earnings are expected to grow 9.8% in 2022. And current estimates suggest 6.5% growth in next year. These numbers are ahead of the current inflation rate. And Apple also has a long history of exceeding earnings estimates.
Apple stock trades at 28-times earnings. That’s a premium to the S&P 500 index. Yet it’s a reasonable price for a high-quality growth stock.
Analysts appear to be low-balling Google’s growth for 2022 – projecting just a 3.2% increase. However, Google has typically crushed the estimates. And it’s likely the company’s earnings will grow at least 10% this year.
The stock trades at 24-times earnings – making it the cheapest of these big tech stocks.
This is the fastest growing of the three stocks. Earnings growth is expected to hit 16% in 2022 and 15% in 2023. Even if inflation stays between 7% – 8% – Microsoft’s growth will be 2x the inflation rate.
MSFT is the most expensive of these 3 stocks. It’s trading at nearly 33-times earnings. Yet the premium price is justified due to the superior growth rate.
Apple, Google and Microsoft are the best big tech stocks to beat inflation in 2022. If you don’t own them – now’s the time to consider adding them to a portfolio.
These stocks should outperform the S&P 500.
However, they’re unlikely to deliver the explosive gains of recent years.
That’s why I’m also buying up the next generation tech stock winners. And getting into these stocks could be like jumping into Apple, Google, or Netflix 10+ years ago.
They’re called MACE stocks.
Access my urgent LIVE webinar to discover:
- What exactly are MACE stocks – and why you have not heard of them
- When these MACE stocks could become household names
- Details on 5 of these next generation tech stocks
- How these stocks could crush FANG stocks in the next 3 years
- Why I’m planning to bet $100,000 of my personal savings on these stocks
Yours in Wealth,